Standard Oil Company; Trusts, Industrial -- United States
Mr. Gowen bravely fulfilled his pledge not to submit. His principal
occupation became the championship in the courts and the Interstate
Commerce Commission of those who were oppressed by this crushing
power. His incorruptible lance was always in place, until the morning
he was found dead in his room in Washington.
The oil combination had, up to this time, sent all its oil east by
rail as it had no pipe line, and its faithful fools, the railroads,
therefore burned their fingers with joy to roast the Tidewater for so
good a customer. But while the railroad officials were wasting their
employers' property to destroy the combination's new competitor, its
astute managers, seeing how good a thing pipe lines were, quietly
built a system of their own to the seaboard. The railroads had helped
them get hold of the pipe lines--had in repeated cases, as the Erie,
the Atlantic and Great Western, the Pennsylvania, the Cleveland and
Marietta did, allowed them to lay their pipes on the lands of the
railroads--and were now to see the pipe lines used to replace the
railroads in the transportation of oil. These oil men saw what the
railroad men had not the wit to see--or else lacked the virtue to live
up to--that the pipe line is an oil railway. It requires no cars and
no locomotives; it moves oil without risk of fire or loss; it is very
much cheaper than the ordinary railway, for this freight moves itself
after being lifted up by pumps. The pipe line was the sure competitor
of the railway, fated to be either its servant or master, as the
railroad chose to use it or lose it. The railways sentimentally helped
the trust to gather these rival transportation lines into its hands;
then the trust, with the real genius of conquest, threw the railroads
to one side. A system of trunk-line pipes was at once pushed vigorously
to completion in all directions. While the members of the oil trust
were building these pipe lines to take away the oil business of the
railroads, the officials of the latter were giving them by rebates the
money to do it with. At the expense of their own employers, the owners
of the railroads, these freight agents and general managers presented
to the monopoly, out of the freight earnings of the oil business, the
money with which to build the pipe lines that would destroy that branch
of the business of the roads.
It was the Tidewater that proved the feasibility of trunk pipe lines.
The trunk pipe lines the combination has built were in imitation.
Extraordinary pains have been taken to sophisticate public opinion
with regard to all these matters--for the ignorance of the public is
the real capital of monopoly--and with great success. The history we
have transcribed from the public records is refined by one of the
combination into the following illuminant:
Public-domain text, read in full here on John Shaqi.
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